1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ad libitum [116K]
3 years ago
14

You are bullish on Telecom stock. The current market price is $100 per share, and you have $15,000 of your own to invest. You bo

rrow an additional $15,000 from your broker at an interest rate of 6.0% per year and invest $30,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 8% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)
Business
1 answer:
likoan [24]3 years ago
7 0

Answer:

10%

Explanation:

Value of investment in the beginning = $30,000

Value of investment at the end = $30,000 (1 + 0.08)

                                                    = $30,000 × 1.08

                                                    = $32,400

Interest paid = $15,000 × 6%

                     = $900

Rate of return:

=\frac{Value\ at\ the\ end-Value\ in\ beginning-Interest}{Total\ amount-Borrowed\ amount}\times100

=\frac{32,400-30,000-900}{30,000-15,000}\times 100

=\frac{1,500}{15,000}\times 100

      = 10%

Rate of return is 10% if the price of Telecom stock goes up by 8% during the next year.

You might be interested in
Mr. and Mrs. Nabulsi are 44 and 41 years old, respectively. They have two children, 14 and 16 years old. They are successful and
mixer [17]

Answer:

mnb   b

Explanation:

5 0
3 years ago
Which leadership factor is defined as giving pep talks, asking employees for advice and praising their work, keeping them inform
Andrei [34K]

The leadership factor that is defined as giving pep talks, asking employees for advice is Motivating others.

<h3>What is Motivation?</h3>

Motivation serves as an act of giving energy to the components of the organization, it involves building up trust.

Therefore, motivation involves praising the work of employees and keeping them informed

Learn more about Motivation at;

brainly.com/question/25927714

#SPJ1

3 0
2 years ago
Read 2 more answers
Internal controls that should be applied when a business takes a physical count of inventory should include all of the following
irina1246 [14]

Answer:

e) Counters of inventory should be those who are responsible for the inventory.

Explanation:

Having different people do the physical counting of inventory guarantees the integrity of the count. The staff in charge of inventory are probably aware of any variances as they conduct regular checks. Having different people count eliminates the possibility of number manipulation by the staff responsible for the stock.

Before a stock count, all operations should be halted. Items received during the stock count should be separated and not counted. There should be a document giving instructions to staff to ensure consistency.

As a measure of internal control, all stocks should be identified with a numbered tag. The supervisor should ensure proper tagging has been done. Where possible, counters will be organized in teams of two so that each item goes through two counts. Assign groups to count items which are not in their direct responsibility. Should there be a variance, a separate team should be allowed to counter check.

8 0
3 years ago
How does a country determine whether it has a comparative advantage in the production of certain goods?
Sergeu [11.5K]

Answer:

Comparative Advantage: A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.

For determining comparative advantage, countries compare their good's opportunity cost with the other country's goods opportunity cost.

7 0
3 years ago
A customer’s order was never filled because an order entry clerk transposed the customer identification number while entering th
Stells [14]

Answer:

The correct answer is C. Validity check.

Explanation:

Identifying possible errors in real time, as the process progresses through the warehouse, allows you to make the necessary adjustments at the moment and reduces the time and resources dedicated to correcting faults. Intermec 2D and RFID portable barcode technologies improve the accuracy of storage processes and preparation of orders to such an extent that many companies can do without the step of verifying orders in the loading process.

6 0
3 years ago
Read 2 more answers
Other questions:
  • What would be the cash balance in the general ledger if a credit of $2,000 is posted to the cash account that had a beginning ba
    13·1 answer
  • Which of the following is exchange traded?
    7·1 answer
  • A company that is most motivated to make money has a
    10·1 answer
  • In 2014, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2015 for $700,000. Before the Decemb
    8·1 answer
  • What was designed for online shopping
    14·1 answer
  • Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the marke
    6·1 answer
  • Radu is a global manufacturer of automotive parts. The annual reporting period ends Dec. 31. Below find balances for all of its
    10·1 answer
  • The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d
    12·1 answer
  • According to hagan and his associates, within the paternalistic home, mothers are expected to control the behavior of their sons
    15·1 answer
  • SwiftyCompany is considering two capital investment proposals. Estimates regarding each project are provided below:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!